Question: Determine which one(s) should be selected based on a B/C analysis using an interest rate of 7% per year and a 10-year study period. Assume
Determine which one(s) should be selected based on a B/C analysis using an interest rate of 7% per year and a 10-year study period. Assume independent projects and no budget limit. Note: For selection, select either YES or NO. For B/C Ratio, select the correct answer in each column.
| Alternative 1 | Alternative 2 | Alternative 3 | Alternative 4 | |||
| Initial cost, $ | 50,000 | 95,000 | 110,000 | 75,000 | ||
| M&O Cost, $/year | 40,000 | 64,000 | 35,000 | 30,000 | ||
| Benefits, $/year | 120,000 | 180,000 | 76,000 | 52,000 | ||
| Disbenefits, $/year | 30,000 | 35,000 | 28,000 | 14,000 | ||
| B/C Ratio | 1.91,0.75,1.87,0.93,1.12,1.54,1.82,0.95,YES,NO | 1.91,0.75,1.87,0.93,1.12,1.54,1.82,0.95,YES,NO |
| 1.91,0.75,1.87,0.93,1.12,1.54,1.82,0.95,YES,NO | ||
| Selection | Yes or No |
|
| Yes or No |
Note: For selection, select either YES or NO. For B/C Ratio, select the correct answer in each column.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
